Investor Nexus creates roadblock between Snapdeal-Flipkart merger

The Snapdeal board has been unable to reach a consensus to merge the embattled online marketplace with its bigger rival FlipkartUpdated: May 03, 2017, 10:48 IST

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The Snapdeal board has been unable to reach a consensus to merge the embattled online marketplace with its bigger rival Flipkart, sources aware of the development said. Nexus Venture Partners, an early investor in the Gurgaon-based e-commerce player, refrained from giving its approval to the proposed sale at Tuesday's board meeting, sources said.

The investor, which holds around 10% stake in Snapdeal, has shown interest in part-selling its stake to the company's largest investor SoftBank in lieu of a holding in the merged entity. Nexus has invested around $45 million in the e-tailer over the years.

The Bengaluru-based Kalaari Capital, which holds around 8% in the firm, however, has agreed to divest its stake in the company to SoftBank. Nexus's vote is necessary for the proposed merger to go through.

Emails sent by TOI to spokespersons of Nexus Venture Partners and Snapdeal did not elicit a response. SoftBank too did not respond on Tuesday's development, while Kalaari Capital MD Vani Kola refused to comment on the matter.

Sources added that the top brass of Flipkart had met last week as well to discuss the merger of Snapdeal. "Nexus did not sell any of its shares in Snapdeal all these years while Kalaari made $100 million in a secondary when SoftBank first invested. It seemed like the payout for Nexus's stake was the hurdle but now the fund has shown interest in wanting a share in the combined entity of Flipkart and Snapdeal," a person close to the matter said.